Market Insights from Schaeffer's Market Blog: Alcoa, Goodyear, Microsoft, and Anadarko

Strategic Insights -

On December 26, Schaeffer's Market Blog featured stocks such as Alcoa (NYSE:AA), Goodyear Tire & Rubber (NYSE:GT), Microsoft (NASDAQ:MSFT), and Anadarko Petroleum (NYSE:APC). The Market Blog is a daily commentary written by Schaeffer's financial analysts and traders, offering quick insights into the day's most notable market activity from an options perspective.

Key Takeaways:

  • Alcoa (NYSE:AA) reached a tentative agreement with the United Auto Workers Local 1050 on a new labor contract, ending a seven-week strike and sending the plant's 830 employees back to work on January 2.
  • The stock is up nearly one percent to $29.50, bouncing off support at the 29 level, which is also the site of the security's 20-month moving average.
  • Goodyear Tire & Rubber (NYSE:GT) reached a tentative agreement with the United Steelworkers (USW) on a new master contract, covering 12,600 employees at 12 tire and engineered products plants in the United States.
  • Goodyear's labor woes have been largely ignored by traders, who have seen the stock rally from its July low of $9.75, with the price more than doubling during the past several months.
  • Microsoft (NASDAQ:MSFT) continues to struggle with the 30 level, with the stock currently trading at $29.78 and showing significant intraday volatility.
  • Anadarko Petroleum (NYSE:APC) has agreed to sell its Vernon and Ansley fields to Exco Resources for $1.6 billion, boosting the stock back above peak put open interest in the January series.
  • APC's Schaeffer's put/call open interest ratio of 1.10 ranks above 87 percent of those taken during the past year, indicating a potential sustained rally.

Statistics:

  • Alcoa's stock is up nearly one percent to $29.50.
  • The number of AA shares sold short increased by seven percent to a multi-year high of 17.7 million in December.
  • Goodyear's labor agreement covers 12,600 employees at 12 tire and engineered products plants in the United States.
  • Microsoft's short term trendlines are at resistance, causing traders to be cautious.
  • Anadarko Petroleum's Schaeffer's put/call open interest ratio is 1.10, ranking above 87 percent of those taken during the past year.
  • APC has lost more than 25 percent since mid-April.

Sources:

  • Schaeffer's Market Blog, December 26
  • Alcoa (NYSE:AA) press release, December 26
  • Goodyear Tire & Rubber (NYSE:GT) press release, December 26
  • Microsoft (NASDAQ:MSFT) press release, December 26
  • Anadarko Petroleum (NYSE:APC) press release, December 26
  • Schaeffer's Investment Research (www.SchaeffersResearch.com)
  • Forbes and Barron's, recognition of Schaeffer's website as the top options website